Correlation Between Old Republic and ACAFP
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By analyzing existing cross correlation between Old Republic International and ACAFP 475, you can compare the effects of market volatilities on Old Republic and ACAFP and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Old Republic with a short position of ACAFP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Republic and ACAFP.
Diversification Opportunities for Old Republic and ACAFP
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Old and ACAFP is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Old Republic International and ACAFP 475 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACAFP 475 and Old Republic is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Old Republic International are associated (or correlated) with ACAFP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACAFP 475 has no effect on the direction of Old Republic i.e., Old Republic and ACAFP go up and down completely randomly.
Pair Corralation between Old Republic and ACAFP
Considering the 90-day investment horizon Old Republic International is expected to generate 0.29 times more return on investment than ACAFP. However, Old Republic International is 3.5 times less risky than ACAFP. It trades about 0.21 of its potential returns per unit of risk. ACAFP 475 is currently generating about -0.32 per unit of risk. If you would invest 3,471 in Old Republic International on September 5, 2024 and sell it today you would earn a total of 349.00 from holding Old Republic International or generate 10.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 26.19% |
| Values | Daily Returns |
Old Republic International vs. ACAFP 475
Performance |
| Timeline |
| Old Republic Interna |
| ACAFP 475 |
Old Republic and ACAFP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Old Republic and ACAFP
The main advantage of trading using opposite Old Republic and ACAFP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Republic position performs unexpectedly, ACAFP can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in ACAFP will offset losses from the drop in ACAFP's long position.| Old Republic vs. Progressive Corp | Old Republic vs. Cincinnati Financial | Old Republic vs. W R Berkley | Old Republic vs. Markel |
| ACAFP vs. QBE Insurance Group | ACAFP vs. Aspen Insurance Holdings | ACAFP vs. Old Republic International | ACAFP vs. Kinetik Holdings |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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